Pandox (PNDX) Q2 2024 earnings summary

Executive summary

• Achieved profitable growth and strong cash flow in Q2 2024, supported by a robust hotel market, well-filled event calendar, and diversified portfolio across 11 countries and 90 cities, totaling 157 hotels and 35,000 rooms.

• Group revenue increased by 6% like-for-like, with NOI up 6% like-for-like and cash earnings up 10%.

• Profit before changes in value increased by 16% year-over-year, with double-digit earnings growth.

• Active value creation through property management, development, portfolio optimization, and sustainability initiatives.

• Profit for the period surged to MSEK 710 in Q2, reflecting higher property values and improved cash flow.

Financial highlights

• Q2 2024 revenue reached MSEK 1,866, up 5% year-over-year; NOI was MSEK 1,125, up 10%.

• EBITDA increased by 11% to MSEK 1,082; cash earnings rose 10% to MSEK 560.

• EPRA NRV per share grew to SEK 207.7, adjusted for paid dividends.

• Unrealized property value changes were positive SEK 423 million, driven by increased cash flow.

• Average outgoing interest on debt decreased to 4.1% in Q2.

Outlook and guidance

• Expects continued revenue growth in the hotel market for 2024, supported by strong leisure demand, a full event calendar, and increased international travel.

• Anticipates RevPAR growth in 2025, though Q2 2024 will be a tough comparison due to exceptional events.

• Moderate increase in new hotel capacity expected through 2026, with a window of limited new supply in key markets.